The private sector and multidimensional poverty reduction in Vietnam: A cross‐province panel data analysis

Abstract

This study examines the role of private sector development (PSD) in multidimensional poverty alleviation in Vietnam, using provincial panel data for the 2010-2019 period. PSD is measured as the proportion of the workforce in (i) all private firms, (ii) domestic private firms, and (iii) multinational firms, respectively. We use a two-step general method of moment estimator to account for unobservable heterogeneity, simultaneity, and the relationship between current provincial characteristics and past provincial poverty. We find that each percentage point increase in private sector employment contributes to a reduction of 0.30% and 0.31% in multidimensional poverty and monetary poverty, respectively. Notably, further analysis confirms that a similar effect is also found for both domestic private and multinational enterprises. In addition, our study finds that economic growth and educational attainment emerge as major factors mitigating multidimensional and unidimensional poverty, while income inequality increases both poverty measures.

Evaluating the impact of the government loan program on farms in Vietnam: An application of fuzzy regression discontinuity design

“…Nonetheless, studies conducted in Vietnam (Cuong, 2008; Duong & Nghiem, 2022) have exhibited a shortage of policy implications concerning the government's interventions in distorting market signals, as predicted by economists adhering to the Austrian or neoclassical schools. Consequently, owing to the selective nature of autocratic governmental media tools, discussions surrounding the development of the agricultural sector have predominantly centered on optimizing government policies rather than exploring alternative market‐based solutions (see also Van Le & Tran, 2022; Van Le et al, 2022). Thus, this study utilizes a specific case study in Vietnam to delve deeper into several policy implications associated with the roles of the state versus private and social entities in agricultural development.…”

“…Third, therefore, government‐backed capital support policies are viewed not only as a means to ensure societal well‐being but also as an instrument to regulate economic activities, as stipulated in the general provisions of Decree No. 41/2010/ND‐CP on credit policies for agricultural and rural development, aimed at “economic restructuring in agriculture and rural areas.” Thus, the outcomes of this study offer enriched insights into the efficacy of government interventions through loan programs concerning economic effectiveness within the agricultural domain (e.g., revenue), which, in turn, aims towards a balanced offset between state authority and societal power, commonly known as the “narrow corridor” (Acemoglu & Robinson, 2019; Van Le & Tran, 2022; Van Le et al, 2022).…”